Question: d 1 2 3 4 5 6 Consider the following probability distribution of stock A's next period return State Optimistic Neutral Pessimistic 9% -1.5% Probability

d 1 2 3 4 5 6 Consider the following probability distribution of stock A's next period return State Optimistic Neutral Pessimistic 9% -1.5% Probability -6% 0.2 0.5 0.3 Return on Stock A 10% Use scenario analysis. What is the expected return of stock A? -8.5% 2% -15%

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